Pan-European Buying Trends Analysis 2016

European Hardware Association

PAN-EUROPEAN BUYING TRENDS ANALYSIS 2016

Andrzej Bania, Koen Crijns, Dennis Bode

EHA

Koen Crijns / Dennis Bode / Andrzej Bania

Hardware.Info• #1 technology review site in

Benelux• Over 1,500 products tested

annually• Popular product/price

comparison engine, over 1.5 million leads/year

Team Introduction

HardwareLuxx

• THE German guide to

luxurious hardware

• In-depth analysis for more

than 15 years

• Based in Hannover,

the home of Messe

KitGuru.net

• Fastest growing UK site

over the past 6 years

• Over 320,000 followers on

Facebook

• Proven track record driving

traffic to UK resellers

Personal spend on technology in 2016

Survey

26%

37%

24%

13%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Up to €500

€500 to €1000

€1000 to €2000

More than €2000

Level of Spending Influenced in 2016

• Looking only at the readerswho completed this survey ?€10,000,000

• Extrapolating for the completeEHA audience ?€22 Billion

Survey

What do they find exciting?

Survey

What new technologies are consumers excited about?

Survey

47%

22%

12%

10%

8%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Virtual Reality

Smart Home

Connected Audio

Drones / Connected Toys

Wearables / Smart Watches

Interesting variations, by country

• UK was almost exactly on the ‘average’ for everything

• Dutch are 5% more interested in money-saving Smart Home tech

• Spanish are twice as likely to be interested in drones

• Germans are 5% more likely to be interested in Virtual Reality

• We have a lot of numbers that we can share with you after

• We all buy ‘bread and butter’, but they are not exciting

Survey

So, exciting is one thing…

…but what will they actually buy?

Survey

What are you likely to buy in 2016?

Survey

36%

25%

25%

24%

16%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Virtual Reality

Connected Audio

Smart Home

Wearables / Smart Watches

Drones / Connected Toys

7.9mEHA

Readers

Major variation by country – Mid/East Europe

Survey

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Virtual Reality

Smart Home

Wearables / Smart Watches

Connected Audio

Drones / Connected Toys

Romania Poland Germany

Major variation by country – Southern Europe

Survey

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Virtual Reality

Connected Audio

Smart Home

Drones / Connected Toys

Wearables / Smart Watches

Major variation by country – Northern Europe

Survey

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Virtual Reality

Smart Home

Wearables / Smart Watches

Connected Audio

Drones / Connected Toys

Sweden Netherlands UK

Impact on ‘traditional tech’ spending?

Survey

Some ‘old tech’ markets are saturated

Survey

20%

17%

14%

11%

7%

0% 5% 10% 15% 20% 25%

Networking Kit

TV

Laptop or 2-in-1

Tablet

SLR/DV Camera

Spending here will continue

Survey

64%

45%

35%

33%

33%

0% 10% 20% 30% 40% 50% 60% 70%

Core Components

SSD

Gaming Hardware

Smartphone

Monitor

Where does that spend take place?

Survey

The big spenders are focused on online

Survey

Country Online (100% or primarily)

France 97%

Romania 94%

Netherlands 90%

Sweden 90%

Germany 89%

Italy 89%

United Kingdom 87%

Poland 87%

Spain 76%

How do we expect

these ‘new tech’ markets will develop?

Analysis

How do we expect

these ‘new tech’ markets will develop?

A quick look back at 3D

Analysis

The Rise and Fall of 3D

• 2009: nVidia launches 3D specs for €150

• 2010: Sky launches dedicated 3D channel

• 2011: BBC begins 3D content creation

• 2015: Worldwide shipments hit 160m/y

• 2016: Total shipments well over 400m

• 2016: Samsung ‘announces’ no more 3D

Analysis

What we can learn from 3D

• Humans are escapists by nature

• Money will be made whether ‘1st Gen VR’ works or not

• Sell 400m 3D TVs at €500 and you get a €200 billion

market in 7 years

• Global players are all heavily invested

• Lack of common standards creates opportunities

Analysis

Is there more than one VR market?

Analysis

Two Kinds of VR• The public is using the term VR to cover

very different markets

• ExperientialBeing able to move around a film, sports event or concert

• InteractiveBeing able to touch/build/destroy environment

• Each market has very different technicalrequirements – for ‘creation’ and ‘playback’

Analysis

Interactive• Lag can cause nausea

• Nvidia and AMD say ‘Entry Level’ is €300

• Next-gen cards (Pascal/Polaris) will start to bring VR to life

• These are expected to be shown in Q2 –mass market in Q3

• VR-messaged Nvidia sales up 10%

• Current PCs won’t cut it – VR is about selling new high-end game PCs

Analysis

True VR• Creating realistic worlds is difficult

• HD TV is a 1920 x 1080 experience

• For true VR you need to render 8K per eye

• You need the same processing vertically

• True VR is likely to be a 16k by 16k experience

• Take the fastest ‘Next Gen’ Pascal card from nVidia

• Build it into a Quad-SLi – with perfect scaling

• Run a VR game that has been designed/optimised for that rig

Analysis

Demonstrating New Tech

is complicated & expensive

Analysis

Seen Wearable/Smart Home Demo?

Yes, 38%

No, 62%

Survey

More Likely to Buy After a Demonstration?

Surbey

Yes, 74%

No; 26%

You can’t get everyone into a store

for the perfect ‘hands-on’ demo

Analysis

But you can reach the Influencers

• Spend your time and effort identifying

the people who will buy early and buy large

• These people will have experience

• When their friends want to buy ‘new tech’,

they will ask their ‘Friend who knows’

• Epson, HP and others have tried hands-on retail

• There is a much easier route to market…

SOLUTIONS

Want the full results?Go to http://hwi.cc/id/1242

Full results